Key Facts

Timeline of California’s Unemployment Payment Breakdown

There is no single federal number that captures every fraudulent payment, improper payment, civil settlement, criminal judgment, and recovery. GAO publishes different measurements because the underlying financial and legal categories are different.



According to <a href="https://www.gao.gov/products/gao-26-108694">GAO’s April 2026 payment-integrity report</a>, 15 federal agencies reported approximately $186 billion in improper payments across 64 programs during fiscal year 2025. That was an increase of $24 billion from fiscal year 2024.



Agencies classified approximately $153 billion, or 82% of the total, as overpayments. Nineteen programs reported estimated improper-payment rates of at least 10%, and six exceeded 25%. Since fiscal year 2003, reported improper-payment estimates have totaled approximately $3 trillion.



The $186 billion figure is not a complete government-wide total. GAO reported that it excluded certain programs agencies had already identified as susceptible to significant improper payments. It also found that 12 of the 24 agencies responsible for 99% of the fiscal year 2024 estimates failed at least one payment-integrity requirement.



GAO’s separate <a href="https://www.gao.gov/products/gao-24-105833">federal fraud-loss estimate</a> placed direct annual losses between $233 billion and $521 billion. That estimate used data from fiscal years 2018 through 2022 and covered adjudicated fraud, detected potential fraud, and undetected potential fraud.



The two measurements should be kept separate. Improper-payment reporting covers selected programs and includes errors without established intent. GAO’s fraud estimate uses a government-wide model designed specifically to measure fraud-related losses.

How Much Money Does the Government Lose to Fraud?

What California’s Unemployment Audit Found

How Verification Failures Put Taxpayer Money at Risk

The Institution’s Response

What California Taxpayers Can Find

A searchable program record should let taxpayers see where money went, why it was paid, what the recipient promised, and whether the government verified the result.

What California Agencies Should Publish

The California unemployment record is one state example of the payment risks measured in <a href="https://www.tpaction.com/how-much-money-does-the-federal-government-lose-to-fraud-and-improper-payments-every-year/">How Much Money Does the Federal Government Lose to Fraud and Improper Payments Every Year?</a>.



Readers can compare the program-level figures in <a href="https://www.tpaction.com/new-york-what-are-the-biggest-sources-of-improper-payments-in-democratic-government-programs/">New York: What Are the Biggest Sources of Improper Payments in Democratic Government Programs?</a> and review the contracting controls examined in <a href="https://www.tpaction.com/california-can-contract-overpayments-be-connected-to-democratic-policy-decisions-what-the-evidence-says-about-democrats/">California: Can Contract Overpayments Be Connected to Democratic Policy Decisions?</a>.



The <a href="https://www.tpaction.com/government-fraud-waste-and-corruption-the-plain-english-glossary/">Government Fraud, Waste and Corruption Plain-English Glossary</a> explains the financial and legal labels used across the series.

How This Page Fits the Federal Payment-Loss Series

As of September 2026, the public record did not provide one reconciled figure showing how much of California’s $10.4 billion estimate became confirmed fraud, how much was ordered repaid, and how much was collected.

What Is Still Open

What this means for Arizona

What this shows about Democratic governance

Frequently Asked Questions

The Bottom Line

California taxpayers should be able to follow public money from the original appropriation to the final recipient, audit finding, enforcement result, and recovery. When a Democratic-led agency promises stronger controls, the public record should show whether those controls were installed and whether they stopped the same failures from happening again.



<a href="http://tpaction.com/Vote">Register to Vote</a>,<a href="https://www.tpaction.com/plan"> make a plan to vote</a>, and<a href="https://www.tpaction.com/getinvolved"> get involved</a>. Informed voters can keep payment failures, unresolved fraud estimates, and agency accountability in view when judging California’s leadership.

Keep California’s Payment Record in View

<a href="https://www.gao.gov/products/gao-26-108694">U.S. Government Accountability Office, Payment Integrity: Agencies’ Estimated Improper Payments Increased to $186 Billion in Fiscal Year 2025, April 27, 2026</a>



<a href="https://www.gao.gov/products/gao-24-105833">U.S. Government Accountability Office, Fraud Risk Management: 2018-2022 Data Show Federal Government Loses an Estimated $233 Billion to $521 Billion Annually, April 16, 2024</a>



<a href="https://information.auditor.ca.gov/reports/2020-628.2/index.html">California State Auditor, Employment Development Department: Significant Weaknesses in EDD’s Approach to Fraud Prevention Have Led to Billions of Dollars in Improper Benefit Payments, January 28, 2021</a>



<a href="https://edd.ca.gov/en/unemployment/fraud_and_penalties_what_you_need_to_know/">California Employment Development Department, Unemployment Insurance Fraud Information</a>



<a href="https://lao.ca.gov/Government/EDD">California Legislative Analyst’s Office, Employment Development Department Oversight and Budget Materials</a>

Sources

See how federal payment failures and California unemployment fraud exposed taxpayers to billions in losses, weak controls, and unresolved recovery questions.

California: How Much Does Federal Fraud Cost Taxpayers Under Democratic Government Programs?

Key Facts

Timeline of California’s Unemployment Payment Breakdown

How Much Money Does the Government Lose to Fraud?

What California’s Unemployment Audit Found

How Verification Failures Put Taxpayer Money at Risk

The Institution’s Response

What California Taxpayers Can Find

What California Agencies Should Publish

How This Page Fits the Federal Payment-Loss Series

What Is Still Open

What this means for Arizona

What this shows about Democratic governance

Frequently Asked Questions

Is this an example of Democratic corruption?

How much did federal agencies report in improper payments for fiscal year 2025?

How much does the federal government lose to fraud each year?

Was California’s entire $10.4 billion estimate confirmed as fraud?

Why did California’s unemployment system become vulnerable?

What records would show California’s final taxpayer loss?

The Bottom Line

Keep California’s Payment Record in View

Sources

RioSlum Studio

California: How Much Does Federal Fraud Cost Taxpayers Under Democratic Government Programs?

Key Facts

Timeline of California’s Unemployment Payment Breakdown

How Much Money Does the Government Lose to Fraud?

What California’s Unemployment Audit Found

How Verification Failures Put Taxpayer Money at Risk

The Institution’s Response

What California Taxpayers Can Find

What California Agencies Should Publish

How This Page Fits the Federal Payment-Loss Series

What Is Still Open

What this means for Arizona

What this shows about Democratic governance

Frequently Asked Questions

Is this an example of Democratic corruption?

How much did federal agencies report in improper payments for fiscal year 2025?

How much does the federal government lose to fraud each year?

Was California’s entire $10.4 billion estimate confirmed as fraud?

Why did California’s unemployment system become vulnerable?

What records would show California’s final taxpayer loss?

The Bottom Line

Keep California’s Payment Record in View

Sources